During the current year,Campbell Corporation receives dividend income of $40,000 from a 5%-owned domestic corporation.What is Campbell's maximum allowable dividend-received deduction for the current year?
A)$- 0 -
B)$28,000
C)$32,000
D)$36,000
E)$40,000

Question

Quizplus · Accepted Answer

The dividend-received deduction for a corporation owning less than 20% of another domestic corporation is 70% of the dividends received. Therefore, Campbell Corporation can deduct 70% of $40,000, which is $28,000.

During the Current Year,Campbell Corporation Receives Dividend Income of $40,000